A satisfied need no longer motivates. We must continually bring crispy experiences to the table or your customers will walk.

February 04, 2010

Recently the AAAA released findings that support a strategic approach to tapping into the Web that we have followed for over a year.

The following is our video explaining at a fun and high level how you as a Brand or Product manager can tap into the Web to help make goods and services more relevant to your consumers.

The remaining content are excerpts from the AAAA.

According to Joan Schneider’s 2004 book, “New Product Launch 10 Proven Strategies,” traditionally, the new product development process begins three or more years before shipment and includes initial concept generation, final product development, concept and product testing, and finally, launch.

However, the use of social media for obtaining consumer feedback on new products has changed the process and shortened the testing cycle for new products. According to the Wall Street Journal, Web sites, Twitter, blogs and online communities are being used by small businesses to involve consumers in decisions ranging from what to sell, how products look and work, how much the product should cost, and how the company operates. (Wall Street Journal 7/13/2009.)

Kettle Foods has been using consumer input for new chip flavors for more than five years. Spicy Thai was a fan-created flavor that the company considers the most successful product launch in its 25-year history. “Asking the fans for innovation advice has proven very successful,” said VP-Marketing Michelle Peterman Hunt. Kettle has nearly doubled market share in the premium potato chip category during this five year period. (Advertising Age, 11/16/09.)

The AFOL (Adult Fans of Lego) community is brought in on new product development, and Lego has sped up the development process so that it can now get a new product from idea to shelf within a year. As a result, Lego can be more responsive to cultural trends in the rapidly changing toy market. (Advertising Age, 11/9/09.)

Under Armour has been able to speed up the introduction of new products through the use of 3-D software. This software creates realistic images that serve as the basis for product decisions. A physical sample is not needed, which saves time and expense. The result is an 18-month cycle to bring new footwear to market. (CNNMoney.com, 3/5/2009; Advertising Age 11/2/09.)

Heinz tested a Steam n’ Mash frozen potato product for its Ore-Ida brand with online communities. According to CMO Brian Hansberry, the time from idea to national launch was nine months. In contrast, it takes nine to 12 months for a traditional test in the offline world and an additional nine to 12 months to roll out. (Advertising Age, 9/7/09.)

The Fiat Mio is being built in Brazil using consumer-generated input on design, materials, sustainability and infotainment. Ideas are being submitted via the car’s Web site and Twitter. Social media will influence the car’s marketing communications as well as its design. (Advertising Age, 8/24/09.)

Splenda used Facebook to provide samples and to solicit feedback for its Splenda Mist prototype. Ivy Brown, group product director for Splenda, considers Facebook “another tool in which to expose a product idea, concept or actual product to a particular target in a very efficient way.” (Advertising Age, 7/13/09.)

The Cheesecake Factory encouraged customers to name the next new cheesecake flavor via an interactive virtual cheesecake creator at their site. After 10,000 submissions and 20,000 votes, the winning flavor was "Stefanie's Ultimate Red Velvet Cheesecake," the first menu item named after a guest in the company’s thirty years in business. (Promo Magazine Online, 2/2/2009; Chain Leader, 4/1/2009.)

Key Takeaways

Innovation is the key to economic recovery

Advertising continues to play a critical role in building awareness and buzz for new products

Shortened time frame from idea to launch

Increasing involvement of consumers in product development and testing via social media

Green products are here to stay regardless of the economy, but consumers have concerns about greenwashing

Fewer truly new products as manufacturers focus on more dependably profitable line extensions.